In this paper model for organic farming development to support government decision making is presented. After performing several simulation scenarios we discovered that conversion to organic farming relies on subsidies which provide the main motivation for conversion from conventional farming to organic farming. However, the subsidies are not the only driving force in the system, even more important are activities that promote organic farming, since sufficiently large subsidies could not be provided in order to complete the conversion from conventional to organic farming to the extent desired. Another important feature is food demand, determined by population size, which negatively influences the conversion to organic farming due to the increased demand leading to increased food prices.